Business development assignment writing help: Perth home care services company – Mandurah

Perth home care Services Company (PHCS) is in need of another office to accommodate its growing employee strength, which is now approaching 180. There are three alternatives for the new location, to set up the company’s branch i.e. Joondalup, Midland and Mandurah. All the three locations have their own different reasons for the business to be set up in that area. However, while setting up the business, many factors are considered such as initial cost of setting up the business, operational cost after installation, space required by the office, location nearer to bus stops, the availability of the customers, convenience i.e. more number of parking bays for the employees, the safety of the employees, other facility requirements such as meeting rooms with the customers, the cost per square meter, and the contract period of running the business on the new location. Thus, in case of Perth home care services the cost per square meter, the term of the business, convenience, and the return on investment would be seen for a location to be finalized. Out of all the three locations, Mandurah and Midland are close proximities for the Company to set up the office, however considering the net profit and return on investment, Mandurah would be a better location to start the office.  The first and the foremost reason for choosing the location of Mandurah over Midland is that it promises future growth of the organization i.e. the area guarantees highest level of annual growth for every department in the organization, this implies that the customer would increase, the services rendered by the organization would also develop over the next five years and also there will be increase in the quality of existing services provided by the company, the area promises financial growth of the company over the next five years. The second reason to choose Mandurah location is that the term of contract is exact five years, which the area guarantees growth of the company, the third reason is that the estimated cost of establishment is $ 61000, which is slightly more than Joondalup of $58,000, however the term contract at Joondalup is of three years, after which either the company would have to pay more money in order to increase the contract or has to shift once again, which will result in huge investments to the Company again. Considering all these factors in mind, Mandurah would be a better location. The third reason would be that the per square meter cost of the company is $ 425, for the next five years, which is $495 in case of Joondalup and $ 395 in case of Midland, however in Midland the term is for two years only and the prices in real estate rarely tends to be constant, and there is a higher chance that the prices would be increased, which can result in a loss to the organization as a whole in case any of the other two locations are chosen.  The fourth reason why the location of Mandurah should be chosen is that it has the largest space compared to the other two locations. The office at Mandurah location would be 480 square meters, while the other two offices have the space of 400 square meters and 450 square meters. Thus, the office would be most spacious for the new employees which can also prove to be advantageous in case the strength needs to be further increased in the future as the business grows. Also, the number of parking bays provided by the building would be 22, which could accommodate maximum number of employees for the next five years, as all 30 of the new employees would not be using their own transport for commuting.  Thus, return on investment for the organization as a whole is greater in setting up the office in Mandurah. Also, one main important reason for setting up the office in Mandurah is that, the city is home to over 200 businesses offices and service providers, which would certainly prove advantageous to the organization, as it is always beneficial to set up the office in the area where there are many competitors and the business runs good because this saves the organization from catching the new customers for the office, and the organization could then solely focus on improving the services. After the location has been chosen the plan has to be submitted in front of the management team and the board of the directors for approval stating the advantages and the projected cost of setting up the office. The administration would then either approve the new office or disapprove it, considering the newer and fresh options. However a presentation could also be given about the same, to the board of directors, which would have a higher chance of getting the plan selected. If the plan gets approved, then the Engineers would be visiting the site for inspection, followed by the inauguration of the office, and the admin and the HR managers would be taking care of the needs and the queries of the new employees, and also the feedback for working in the new environment would be collected from the employees. The forecast of the annual capital of the office for the first year would be same as that of the organization i.e. $ 11033, for the next year it would be increased by 20% for the organization i.e. $ 13239.6, for the third year would be $ 15887.52, i.e. it would keep increasing at the same rate. For the operational cost of the office at Mandurah, the first year cost would be $ 265000, i.e. combining the $ 61000 establishment cost and the rent for the office building at $ 425 for 480 square meters, yearly. It will keep increasing by 14.49% according to the activities of the organization, as per the Annual Report 2011. Thus, for the first year, it would be $ 204000, for the second year, it would be $ 233580 and for the third year it would be $ 267449.1.

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